MARKETS AND FINANCE PELLETS &63.8It"QSJM.BSDI ! ! Pix Pellet Nordic CIF Note: PIX Pellet Nordic CIF focuses on industrial pellets use in the Nordic and Baltic Sea region. The index is based on the previous month’s data and published the 3rd Tuesday of every month at 12 noon GMT+2. For price conversion between price per ton and price per MWh, a coefficient of 4.8 is used, if not otherwise informed by the price provider. The PIX indexes are trade mark registered, worldwide, by FOEX Indexes Ltd. Using the PIX indexes commercially is subject to approval by FOEX Indexes Ltd, the owner of the PIX index trademark. 3300 BBiiooeenneerrggyy IInntteerrnnaattiioonnaall NNoo 7788,, 22--22001155 GLOBAL CARBON MARKETS 64UPOOFt'FCSVBSZ EUR Energy policies and their impacts on markets in Europe, especially in the UK, have been under discussion recently, as reported by Hawkins Wright Forest Energy Monitor. The demand for electricity is reported to have been low – linked to the mildness of the weather and to the slowness of industrial activity. The effects of these drivers, together with the strengthening of the US dollar against euro, has weakened the fundamentals in the industrial pellet markets, particularly in the ARA area, where prices have recently been falling. Heating pellet markets in the interior Central Europe have still been struggling with the problems created by cheap oil and mild winter conditions. Oil price per MWh has been very similar to that of wood pellets as opposed to the previous 20-30% price difference typically seen to the benefit of pellets. Graanul Invest’s subsidiary Sia Broceni Pellets has acquired land to build a new pellet factory in Latvia. The new pellet plant is expected to be operational in early 2016 with about 150 000 tonne annual capacity. In the UK, Drax has acquired Billington Bioenergy which is the UK’s second largest wood pellet distributor. With this deal, Drax Enters the UK’s heating pellet markets. In Germany, German Pellets has acquired Nord Energie GmbH & Co, which increases German Pellets’ market share in Northern Germany. In the US, in addition to recently completed Enviva’s purchase of Green Circle, there have been mergers and acquisitions also in the residential and heating pellet business. The winter weather remained quite mild in the Nordic countries in February, especially in the southern part of the region. In terms of the prices, downward changes were in a slight majority among the quotes received by us. Euro strengthened by 0.8 % against the Swedish Crown in February, compared to the January 2015 average, meaning some pressure upwards for the SEK value and downwards for the Euro value. After removing the highest and lowest 10 % of the price quotes, the PIX Pellet Nordic benchmark decreased in Euro terms by 0.12 EUR/MWh, or by 0.40 % closing at 30.21 EUR/MWh but increased in Swedish crowns by 1.09 SEK/MWh, or by 0.38 %, closing at 286.70 SEK/MWh. BI78/4797/JH #<4.0:8;,<4=:9.<:==7:-,7,<-:9 ,<60>= Program Price Range ($/tonne) Month-end Price ($/tonne) Monthly Price Change (%) Beijing Chongqing % Guangdong I J Hubei J J Shanghai J % Shenzhen (2013) J I Shenzhen (2014) J Tianjin J JI EU ETS (EUA Spot) California (CCA Spot) J RGGI# # covers power sector emissions only China Carbon Market Review Trading in February was curtailed as exchanges suspended trading for the Chinese New Year. As expected, trader activity was significantly low and all but two markets ended in red with lower month-on-month traded volume. Beijing Emission Allowances (BEAs) rallied 3% during the month backed by a 38% increase in the traded volume. BEAs showed significant strength in a market where cheaper CCERs are also available. The allowances touched multi-month lows twice but recovered with low volumes. Traded volume in Guangdong jumped nearly three times the volume in January. While the allowances managed to gain 1% they continued to be traded at near alltime lows of $3.35. Emission allowances in yet another market touched all-time lows with low trading volumes. Prices of Hubei Emission Allowances (HBEAs) nose-dived on the last Differential to 100-day MA (%) trading day before exchanges closed for the New Year. The allowances hit an all-time low of $3.42 with a 38% cut in traded volume, month-on-month basis. Shanghai saw brisk trading even though prices declined by almost 2% month-on-month. The average daily traded volume jumped to 21,422 in February compared to 13,559 in January. The traded volume during almost all the trading sessions remained higher than the 30, 100, and 150- day moving averages. Verification and compliance timelines have been announced in several carbon markets including Guangdong and Hubei. The covered entities are expected to fulfil their obligations during the second quarter. Compliance entities may look to purchase CCERs at a lower prices compared to emission allowances to fulfil their obligations. BI78/4800/AS Source: ChinaCarbon.net.cn an online media & analytics website that specializes in providing news, content and data on the China carbon market. China- Carbon.net.cn is a trademark of Climate Connect Ltd. Sweden tops EU renewable targets With 52.1% Sweden has by far the highest share of renewable energy in the European Union (EU). It is the only Member State (MS) to have achieved its 2020 objectives, both in total and for the transport sector, seven years ahead of schedule. All according to official 2013 figures published by Eurostat, the EU statistical office. – There are those who say Sweden has lagged behind when it comes to renewable energy investment. The facts show otherwise, development has been faster over the past decade than in any other EU country, said Gustav Melin, President of the Swedish Bioenergy Association, Svebio. BI78/4817/AS
Bioenergy no 2 - March 2015
To see the actual publication please follow the link above